Gold Price Rises on Tariff Tensions and Geopolitical Risks

Gold jumped nearly 3% as President Trump announced plans to double tariffs on U.S. steel and aluminum imports to 50% starting June 4, fueling safe-haven demand and weakening the U.S. Dollar. The EU expressed strong regret and warned of potential countermeasures.
The rally continued on Tuesday (June 3) as geopolitical tensions escalated. Ukraine launched its largest drone attack on Russian airbases, while Moscow responded with long-range strikes on Kyiv. These events, combined with weak U.S. ISM Manufacturing PMI (May: 48.5, lowest since Nov), added to market anxiety.
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Investors are watching the Fed’s upcoming statements for clues on rate direction. Lower interest rates and global instability continue to support gold’s bullish case.
Technical Outlook – XAUUSD
Gold hit $3,371, then pulled back slightly, but remains on track to reach $3,400 soon. A short-term bullish channel is forming, and RSI above 50 suggests more upside potential.
Pullbacks above the 21-day EMA and 0.382 Fibonacci level are likely temporary corrections or buy opportunities.
Support: 3,326 – 3,300 – 3,292
Resistance: 3,371 – 3,400 – 3,435